Madigan announced the lawsuit yesterday, accusing Safeguard Properties of breaking into homes, changing the locks, and shutting off utilities before foreclosures are final.
Safeguard is retained by mortgage lenders to determine if a home in default or foreclosure is still occupied. If it's vacant, Safeguard secures and maintains the property.
While not citing an exact number or specific instances, Madigan claims Safeguard has "routinely" determined houses were vacant when they were not.
A Safeguard spokeswoman says the company follows industry best practices and will "vigorously defend" against Madigan's lawsuit.